Vedder Thinking | News Sam Tyfield Weighs In on London's Spread Betting Sector in Financial Times Article
December 7, 2016
Sam Tyfield, a Partner in Vedder Price's London office and member of the firm's Finance & Transactions and Investment Services groups, spoke to Financial Times about the current state of turmoil that London's spread betting industry is facing after the announcement of the Financial Conduct Authority's (FCA) new restriction on contracts-for-difference (CFD) trading. After a surge in complaints from investors unexpectedly losing money, the FCA issued the regulation on CFD trading, which requires spread betting companies to disclose profit ratios and issue risk warnings.
In the article, "London's Spread Betting Sector Faces Turmoil After Regulatory Blow," Mr. Tyfield commented on the market's reaction to the FCA's ruling, stating it was "a bit hyperbolic."
He later went on to comment, "it's an established product that is not necessarily traded by inexperienced retail clients," and additionally, elaborated on the fact that CFDs offer retail investors access to markets that would otherwise not be within their budgets, as well as allow for a tax-efficient way of trading.
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